Our flexible global fixed income capabilities

Helping you address the challenges of fixed income investing in today's market environment

The future returns of traditional, benchmark-oriented fixed income funds may be limited by historically low yields and central banks that are normalizing or seeking to normalize interest rates.

For investors looking for a solution capable of navigating potentially volatile fixed income markets whilst taking advantage of opportunities as they arise, unconstrained bond funds are an attractive option.

For more on our flexible bond offerings

Main challenges for fixed income investors

Lots of negative yields debts

For illustrative purpose only
*Source: Bloomberg Barclays Global Aggregate
Index, data as at 31 December 2019

The amount of negative-yielding debt continues to grow and poses risks for investors

Central banks' different paths

For illustrative purpose only. Source: Macrobond, data: 1 January 2010 to 1 January 2020.

Divergences in monetary policy between major central banks reflects key differences in fundamentals in each region

*Based on BofAML USD indices across Treasury, investment grade, high yield, emerging markets, mortgage backed and minicipals
Source: UBS Asset management, data as of 30.03.2019

Historically low yields

For illustrative purpose only

When interest rates are low, bond yields also remain low

Big return differences across fixed income classes^*

*On average over past 21 years based on Bof AML USD indices across Treasury, investment grade, high yield, emerging markets and mortgage backed, data as of January 2020

Flexibility is key when investing in fixed income as there are big return differences across asset classes

Benefits of flexible investing across fixed income asset classes

A look at the attractiveness of fixed income asset classes in different market environments including an expansion, recession, when markets trough and when markets recover.